Should Cryptocurrency Be Regulated?
Should cryptocurrency be regulated? This question has been on the minds of many Bitcoin investors and the like since cryptocurrency first came onto the market. Cryptocurrency has proven to be a seamless method to perform transactions across the globe. The market is fast-paced, constantly fluctuating, and many are eager to jump right in and get to trading as an alternative to participating in the stock market. Every day, the cryptocurrency world is expanding to include people from every demographic, and new technology is contributing to that steady increase of traders. For instance, it’s been discovered that Bitcoin ATMs actually contribute to cryptocurrency growth. With more users and more money in virtual circulation, decision-makers are posed with the question, “Should cryptocurrency be regulated?”
One of the greatest things about cryptocurrency is also one thing that causes many potential investors to pause: the lack of regulations. Legislators worldwide are attempting to find a way to get in on the profit, but should cryptocurrency be regulated to make the market safer for investors? Let’s find out.
Should Cryptocurrency Be Regulated?
Born out of decentralization, cryptocurrency holds onto its attractiveness by being unregulated. When you ask, “Should cryptocurrency be regulated,” know that this question defies the very nature from which cryptocurrency was created. It was intended to be the antithesis to formal standards of exchange and defy the long-held norms of our current economy. Standard procedures for regulating all forms of currency are falling behind when assessing the need for restrictions and monitoring a digital currency, like Bitcoin. The entire concept of a digital currency is still new and highly innovative. Central banks have yet to truly adapt to the technological advancements that made cryptocurrency exchanges possible. Even so, this delay in progress is beneficial to the active players in the cryptocurrency world. Most cryptocurrency traders stand at a crossroads, and to form a true opinion on the matter, it’s necessary to evaluate the pros and cons of each stance. Keep reading to see a few of each.
The Benefits of Regulation
According to an article published by Business Insider, the key to boosting the adoption and popularity of cryptocurrency lies in government regulation. There have been opinions, which suggest rules for handling the trading of cryptocurrency, but seldom do governments put these rules into law through formal regulations. So, should cryptocurrency be regulated? Let’s take a look at a few benefits of regulation.
Reduced Scamming
A massive benefit of regulating cryptocurrency is a reduction in scamming. The cryptocurrency world is very profitable for traders who can strategize and have perfected how to make money with Bitcoin. Swipers and scammers are free to roam the cryptocurrency networks, looking for unsuspecting investors to steal money from. Scam tokens are flooded into the exchange, leaving traders holding coins that aren’t worth anything. What’s worse is that now the previously fortified and unhackable cryptocurrency exchange is being infiltrated by skilled hackers eager to steal from participants. Government regulations would be a strong deterrent for these crooks to stop their hacking. Moreover, once a cryptocurrency is regulated, there will be a means for traders to have their lost money returned to them. If you’re asking, “Should cryptocurrency be regulated?” it should be understood that regulation would ensure that new traders and new coins would have to meet a certain standard before participating in the market.
Legitimacy And A Bigger Clientele
The regulation will provide that much-desired legitimacy that cryptocurrency has long for since its inception. When stacked up against the many world currencies, crypto is the underdog. With a lack of regulations, it is often believed that cryptocurrency is used to solicit illegal transactions. Since cryptocurrency enables its participants to be anonymous and maintains lower fees on each transaction when compared to other currencies, there’s an implication that cryptocurrency investors need secrecy and lower costs. The regulation will bring these transactions to the light to a certain degree and dispel many rumors surrounding cryptocurrency, which will allow for bigger fish to step into the crypto pond. People who can afford to trade large amounts of cryptocurrency will feel more secure gambling their money according to regulations. Regulators will provide a clear operational framework that creates a safe environment for larger institutions or financial heavy hitters to feel more comfortable investing in cryptocurrency.
The Drawbacks of Regulation
It would be unwise to assume everything would be great when it comes to the topic of regulation. While an argument can be made for the delay in adapting to technology, there must be other reasons that governments are slow and even hesitant to put regulations on digital currency. After assessing some of the benefits to answer, “Should cryptocurrency be regulated,” it’s vital that we dive into some of the drawbacks.
Jumping Ship
As mentioned before, one of the greatest parts of cryptocurrency is the lack of regulations. Anonymity makes cryptocurrency optimal for investors. With some cash and a driver’s license, traders can find the nearest Bitcoin ATM and complete transactions with participants worldwide. Regulations might make the crypto market less appealing to traders and put a cap on those interested in beginning their journey trading. Here are some of the pros of cryptocurrency that might be impacted if governments choose to regulate:
24-hour accessibility and instinct transactions
Transparent blockchain ledger
Complete and absolute anonymity
Low transaction costs
Ability to make frequent cross-country exchanges
Additional Fees & Higher Transaction Costs
Cryptocurrency transactions are appealing to investors because they offer a worry-free method of sending money. Traders rejoice over lower transaction fees and minimal wait time when completing a transaction. While cryptocurrency remains unregulated, it is still the most preferred and cost-effective option for traders. Regulating cryptocurrency could mean an end to low transaction costs and the beginning of additional unwanted fees to complete an exchange, which could be a huge turn-off got many cryptocurrency investors.
Pelicoin Is Here To Keep You Trading Bitcoin
Should cryptocurrency be regulated? We’ll all just have to wait and see. In the meantime, get the most out of an unregulated experience with Pelicoin. We offer a fast and safe Bitcoin network to complete cryptocurrency transactions. Find your Bitcoin ATM today and get to trading!